Aeron Composite (NSE:AERON) Interest Coverage : 7.18 (As of Mar. 2023)

View and export this data going back to 2024. Start your Free Trial

What is Aeron Composite Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Aeron Composite's Operating Income for the six months ended in Mar. 2023 was ₹102 Mil. Aeron Composite's Interest Expense for the six months ended in Mar. 2023 was ₹-14 Mil. Aeron Composite's interest coverage for the quarter that ended in Mar. 2023 was 7.18. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Aeron Composite's Interest Coverage or its related term are showing as below:

NSE:AERON's Interest Coverage is not ranked ^*
in the Conglomerates industry.
Industry Median: 4.905
* Ranked among companies with meaningful Interest Coverage only.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Aeron Composite Interest Coverage Historical Data

The historical data trend for Aeron Composite's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

Aeron Composite Interest Coverage Chart

Aeron Composite Annual Data

Trend

Mar21

Mar22

Mar23

Interest Coverage

6.65

5.08

7.18

Aeron Composite Semi-Annual Data
	Mar21	Mar22	Mar23
Interest Coverage	6.65	5.08	7.18

Competitive Comparison of Aeron Composite's Interest Coverage

For the Conglomerates subindustry, Aeron Composite's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Aeron Composite's Interest Coverage Distribution in the Conglomerates Industry

For the Conglomerates industry and Industrials sector, Aeron Composite's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Aeron Composite's Interest Coverage falls into.

Save Embed

;

Save Embed

;

Aeron Composite Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Aeron Composite's Interest Coverage for the fiscal year that ended in Mar. 2023 is calculated as

Here, for the fiscal year that ended in Mar. 2023, Aeron Composite's Interest Expense was ₹-14 Mil. Its Operating Income was ₹102 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹9 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Mar. 2023 )	/	Interest Expense (A: Mar. 2023 )
	=	-1	*	101.744	/	-14.172
	=	7.18

Aeron Composite's Interest Coverage for the quarter that ended in Mar. 2023 is calculated as

Here, for the six months ended in Mar. 2023, Aeron Composite's Interest Expense was ₹-14 Mil. Its Operating Income was ₹102 Mil. And its Long-Term Debt & Capital Lease Obligation was ₹9 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2023 )	/	Interest Expense (Q: Mar. 2023 )
	=	-1	*	101.744	/	-14.172
	=	7.18

The higher the ratio, the stronger the company's Financial Strength is.

Aeron Composite (NSE:AERON) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Aeron Composite Interest Coverage Related Terms

Thank you for viewing the detailed overview of Aeron Composite's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Aeron Composite Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » Aeron Composite Ltd (NSE:AERON) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

Sarkhej Bavla Highway, Saket Industrial Estate, Plot No. 30/31, Opposite HOF Furniture, Changodar, Moraiya, GJ, IND, 382213

Website

https://www.aeroncomposite.com

Aeron Composite Ltd is engaged in the business of manufacturing and supplying ceramic refractories, FRP/GRP composites, ceramic tiles, waterjet and laser cutting machines, paints, and lime. It offers complete solutions which include conceptual design, prototype development, testing, manufacturing, logistic support, installation, and comprehensive after sales service. The company's products are used in various markets and applications such as water and waste water, metals and mining, oil and gas, pulp and paper, transportation, telecommunications, pharmaceutical, chemical, etc. Geographically, it caters to both the domestic and the international markets of which, maximum revenue is derived from its customers located outside India.

Aeron Composite Headlines

No Headlines